Cash Options of Jackpots

Reply #5

dvdiva — Sun, 26 Aug 2007 17:52:21 GMT

But the MSM reports based on the useless annuity value. Bloomberg actually reported that a $300 million powerball was worth more than a $250 million Euromillions pot that was $250 in cash. With poor reporting like that, one has to wonder how wrong the rest of the reports are at Bloomberg. Maybe companies should report their earnings as an annuity value so reporters with poor understanding of math can help inflate corporate valuations.

Reply #4

justxploring — Sun, 26 Aug 2007 16:25:58 GMT

On another thread, dvdiva brought up what happens to beneficiaries should someone die while taking annual payments. I never gave this much thought, because most people I know don't have millions of dollars to invest (I wish!) and most annuities people purchase will pay out a lump sum upon death. That's because there isn't a future value and it's usually an investment to defer taxes and protect savings from creditors, etc. Since the PB annuity is a structured settlement, if a winner chooses a... [ More ]

Reply #3

sfilippo — Sun, 26 Aug 2007 11:08:47 GMT

On a positive note - Powerball's anuity can be willed to anyone after the winner is deceased or it can be cashed out at any time through Powerball. It can also be split up part cash and part anuity to multiple parties.

Reply #2

fbird — Sat, 25 Aug 2007 23:30:37 GMT

plain and simple it all has to do with the greed of the participating states and how big a slice they can get!! 20 years should be a cap on these type of drawings, but as normal, they don't really care what the players want

Reply #1

justxploring — Sat, 25 Aug 2007 16:32:01 GMT

I agree, but is that because the payout is longer with PB so a smaller annuity would yield more money over 30 years than 26 years? Obviously it's done on purpose, but I think all jackpots (state or multi-state) should be paid out over 20 years or 25 at the most. I might be wrong, but I think more people would take annual payments if they offered a shorter term. Although I might consider annual payments if I won a jackpot, I would never want a graduated annuity at my age and 30 years is a long... [ More ]

Cash Options of Jackpots

Bradly_60 — Sat, 25 Aug 2007 16:25:23 GMT

Well MM is $50 million behind Powerball and MM still has a larger cash jackpot. Look how much just fooling around with the annuity payments can affect the size of the annuity jackpot.

Brad